Buying a house is a costly business – in fact, it is one of the most expensive things we will ever buy in our life. On top of the cost of the actual property itself are lots of other costs to take into account when you are buying a property – these include the solicitors and conveyancing fees, removal services and of course stamp duty.
Stamp duty has been in the news a lot over the past year or so due to the stamp duty holiday hat was put in place by the chancellor in July 2020. It is something that many people looking to buy a property can struggle to get their heads around, and with frequent changes and a volatile economy, it can be even more confusing at the moment!
Until 30th June 2021, there is no stamp duty to be paid on properties that are purchased for under £500,000. After this time, it will go back to the previous rates, which if it is between £125,000 – 250,000 it is 2% of the value of the property, if between £250,001 – £925,000 it is 5% of the value of the property, £925,001 – £1.5 million it is 10% of the value and over £1.5 million it is 12%.
To make things more confusing though there are situations where you still may not have to pay stamp duty – for example, first time buyers are exempt from paying stamp duty when they are purchasing a property for less than £500,000.
Some people also are not aware that they are eligible for a SDLT refund (a stamp duty land tax refund) it is certainly worth investigating if you are, even if you bought your house more than a year ago.
